Name of the Project
Obuasi gold mine redevelopment.

Location
The project is located in the Ashanti region of Ghana.

Client
AngloGold Ashanti.

Project Description
Obuasi has been in a limited operated phase since 2014. The project aims to redevelop the mine into a modern, productive, long-life and high-margin mining operation. The mine has mineral reserves of 5.8-million ounces and mineral resources of 34-million ounces. The redevelopment will establish Obuasi as a mechanised underground mining operation.

The approach to redevelopment will be fundamentally different from how the mine was operated in the past. The mine will use automation and controls for improved operational efficiencies and consistent performance.

The project will be undertaken in two phases, with Stage 1 comprising project establishment, mine rehabilitation and development, as well as plant and infrastructure refurbishment to allow for production at 2 000 t/d for the first operating year. This is expected to take about 18 months. The second phase includes the refurbishment of the underground materials handling system, shafts and ventilation; and construction of the primary crusher, the semiautogenous/ball circuit, carbon regeneration, a new gold room and tailings storage facility. This is expected to take a further 12 months and enable the operation to increase capacity to 4 000 t/d. The operation is then expected to ramp up to 5 000 t/d over the following three years.

Production for the first ten years will be focused on the upper orebodies and is expected to be 350 000 oz to 400 000 oz at an average head grade of 8.1 g/t.

In the following ten years, production will average 400 000 oz to 450 000 oz.

Potential Job Creation
The project envisages a smaller, but skilled, workforce that can operate in a mechanised/automated operation. The operation is expected to create between 2 000 to 2 500 jobs. Additional roles will be required during the construction phase of the project.

Net Present Value/Internal Rate of Return
Not stated.

Value
Initial project capital expenditure (capex) of between $450-million and $500-million, excluding preproduction capital of $64-million, is expected in the first two-and-half years.

After the completion of Phase 2, extended project capex of $94-million is expected to continue until Year 6, covering the development of the Obuasi Deeps decline to the lower level of the mine, refurbishment of the Kwesi Mensah shaft, installation of new underground pumpstations and construction of the flotation tailings storage facility.

Duration
The first gold pour is expected by the end of 2019.

Latest Developments
AngloGold’s Obuasi redevelopment project has completed its first week of underground development blasting, as the work to pour first gold by the end of the year gathers momentum.

The first blast, on February 1, advanced development by about 4.2 m on the 2 700 level, which is accessed through the Obuasi Deeps decline from surface, and is just more than 700 m vertically below the decline portal.

Since the first blast, benching and additional face blasts have taken place, with more than 14 m of advance recorded.

Development of the project is progressing as planned and it is expected that capacity will ramp up to about 1 km a month of linear advancement in the second half of the year.

Stoping operations are expected to start in the fourth quarter of this year, as new production areas are accessed.

Key Contracts and Suppliers
Underground Mining Alliance, a joint venture between African Underground Mining Services and Rocksure International (mining services contract).

On Budget and on Time?
The project remains on track to produce its first gold by the end of 2019, with ramp-up expected during 2020.

Contact Details for Project Information
AngloGold Ashanti media and investors, Stewart Bailey, tel +27 11 637 6031 or email sbailey@anglogoldashanti.com.